Shares of Alkyl Amines Chemicals zoomed 10 per cent and hit a new high of Rs 3,640 on the BSE in intra-day trade on Tuesday in an otherwise weak market after the stock turned ex-split today. The company has split the equity share of face value Rs 5 into Rs 2.
At 09:38 am, the stock was trading 9 per cent higher at Rs 3,620 on the BSE, as compared to 0.79 per cent decline in the S&P BSE Sensex, at 49,110 points.
The company has fixed Wednesday, May 12, 2021, as the record date for determining the eligibility of shareholders for split/sub-division of equity shares. Upon sub-division of face of value of each share from Rs 5 to Rs 2, all fractions resulting from the sub-division of shares shall be consolidated into whole Equity shares and the same will be disposed off at the market price and the net proceeds (less expenses, if any) will be distributed proportionately, as far as practicable, to the members concerned, the company said.
The board of directors of the company, at its meeting held on February 2, 2021, had approved the sub-division/split to increase the liquidity in the shares and bring down the company’s share price. It allows retail investors to own the shares at a lower price.
"To facilitate more liquidity of the Company's equity shares in the stock market, it is proposed to subdivide/split equity shares of the face value of Rs 5 each into Rs 2,” Alkyl Amies Chemicals said on the rationale behind the split.
The company is primarily engaged in the business of "Specialty Chemicals”. It has established a leading position in domestic market and a presence in international market with a reputation for reliable service and quality products. With the growing demand for Company’s products, the Board of Directors had approved the investments for enhancement of capacity for Aliphatic Amines at Kurkumbh and Patalganga sites in Maharashtra.
Meanwhile, the company's board of directors is scheduled to meet on May 27, 2021 to consider and approve the audited financial results for the quarter and financial year ended March 31, 2021 and for recommendation of final dividend, if any, on the equity shares of the company.